AIG

[Viking]

I have read similar comments regarding AIG from other insurance executives. AIG also appears to be losing many of its best people. I wonder if the many AIG businesses have begun the 'walk of death'... losing their good people, customers shift some business to competitors, business shrinks... more employees leave, customers pull the plug, business shrinks some more...

 

"He attributed Travelers' lead, at least in part, to winning customers away from rivals, including AIG, which has struggled after massive derivatives losses led to a $180 billion federal bailout."

 

"A flight to quality—there is no doubt there is one," said Mr. Fishman. He added that feedback from agents and brokers was that "many are concerned some companies won't have the capacity to service customers."

 

www.businessinsurance.com/article/20090604/NEWS01/906049986

 

 

[SharperDingaan]

 

Insurance is pushed - not pulled, so a declining premium should be pretty much expected as AIG's best sales people look for greener pastures ..... but look a little more critically at the servicing argument.

 

AIG is pricing down to stem their outflow, but as the insured .. I'm really looking to the US fed to make good on the AIG promises. Comes the first big hurricane payout, that US fed backing is going to trump everything else.

 

SD

 

 

[BargainValueHunter]

Tax treatment of AIG warrants:

 

http://www.marketwatch.com/story/aig-provides-update-on-the-tax-treatment-of-warrants-issued-via-dividend-on-january-19-2011-2011-12-29?reflink=MW_news_stmp

 

United States Internal Revenue Service has ruled that the issuance of approximately 75 million warrants distributed on January 19, 2011, to AIG's common shareholders of record as of January 13, 2011, does not qualify as a tax free stock distribution. However, based on available information and under the rules of the United States Internal Revenue Code, AIG expects that the distribution of the warrants will not be taxable (except to the extent that a holder's adjusted tax basis in each common share on which the warrants were distributed is less than $8.70). Please refer to AIG's website at http://www.aigcorporate.com/investors/warrants.html for additional information. No implication should be drawn with respect to AIG's 2011 fourth quarter or annual results from the tax treatment of the warrants.

[BargainValueHunter]

...and now the Bruce Berkowitz Bash Party continues with the above noted AIG warrants taxation press release as the hammer with which to bash him...

 

http://www.thestreet.com/story/11359944/1/aig-may-have-handed-bruce-berkowitz-his-next-loss.html

 

As if the decline of Sears did not add enough to his New Year blues, fund manager Bruce Berkowitz may be facing a big tax bill for warrants he received as a common shareholder of American International Group.

 

      AIG Provides Update On The Tax Treatment Of Warrants Issued Via Dividend On January 19, 2011

   

The International Revenue Service has ruled that the issuance of 75 million warrants to AIG's common shareholders this January does not qualify as a tax-free distribution, the insurance giant announced on Thursday.

[BargainValueHunter]

Tax treatment of AIG warrants:

 

http://www.marketwatch.com/story/aig-provides-update-on-the-tax-treatment-of-warrants-issued-via-dividend-on-january-19-2011-2011-12-29?reflink=MW_news_stmp

 

United States Internal Revenue Service has ruled that the issuance of approximately 75 million warrants distributed on January 19, 2011, to AIG's common shareholders of record as of January 13, 2011, does not qualify as a tax free stock distribution. However, based on available information and under the rules of the United States Internal Revenue Code, AIG expects that the distribution of the warrants will not be taxable (except to the extent that a holder's adjusted tax basis in each common share on which the warrants were distributed is less than $8.70). Please refer to AIG's website at http://www.aigcorporate.com/investors/warrants.html for additional information. No implication should be drawn with respect to AIG's 2011 fourth quarter or annual results from the tax treatment of the warrants.

 

what? what? it does not qualify but it does?

 

ps: surely you could have bumped a more recent aig thread? :)

 

I figured instead of starting yet another thread about AIG it would be more efficient to add to an already started AIG thread. The title of the thread is not about any particular sub-issue about AIG; the thread is simply titled "AIG". Hopefully if someone searches for forum postings about AIG adding to an already existing thread will make it easier than adding thread after thread about the same company/stock.

 

[BargainValueHunter]

Apple and one other company drive most of the S&P 500 earnings growth.

 

Tell your friends what the other company is and watch their heads explode! ;)

 

http://bit.ly/yKm1El

 

Well the story is even more interesting than that… AIG (yes, *that* AIG) is the other half of the earnings dynamo.  It has had even more of an impact than Apple.  So when you remove those 2 companies, S&P 498 (if you will) growth was a meager 1.1%!  That's actually quite shocking to me, but perhaps because I tend to follow high(er) growth stories.  Apparently a lot of companies must be declining year over year to offset the high growers.